French Government Denies Blame For Collapsed Renault-FCA Merger Proposal

The French government is trying to defend its strategy after being blamed for the collapse of a merger between Renault and Fiat Chrysler Automobiles just 10 days after the proposal was officially announced.

Citing sources familiar with the talks, Reuters reports that the French government, which has a 15 percent stake in Renault, overplayed its hand by demanding a series of guarantees and concessions that were deemed excessive by FCA.

A few hours after the Italian-American group withdrew its merger proposal, a French official reportedly called FCA’s Chairman John Elkann to see if he could reconsider, but was rejected.

Also Read: FCA Abruptly Withdraws Massive Merger Proposal With Renault

French finance minister Bruno Le Maire said that the government engaged in the negotiations constructively but they weren’t ready to back a deal without the endorsement of Renault’s long-time partner Nissan.

The Japanese company said it would abstain to vote on the merger proposal; the deal would give FCA access to Renault’s EV technology and the French company would get a piece of the profitable Jeep and Ram brands but the synergies would depend partly on access to technology jointly owned by Nissan.

Sources close to FCA played down the significance of Nissan’s stance and blamed the French government for the collapse of the deal, which could also further fray the already strained relations between the two partners.

Renault’s board of directors said in a statement that they are disappointed they’re not able to pursue the merger, adding that FCA’s interest highlighted the attractiveness of the company.

  • Denzel

    They could have used ram and Jeep stuff to help the Nissan Titan

    • Robert Eller

      And likewise the Navara for Ram.

    • Jason Miller

      The Titan isn’t given enough credit IMO. It’s a good truck that doesn’t get enough attention, even if it is down on a few features.

    • Alduin

      Then it would just be a Nissan Ram.

  • Six_Tymes

    Deny Deny Deny… lie lie lie… it rhymes.

  • Mr. EP9

    Well it ain’t Nissan’s fault.

  • Thetruthísntalwayspopular

    Never get involved with the French. Of all the car companies across Europe, to see Renault go down would be delicious.

    • Matt

      And why is that? You have VW that was caught up in one of the biggest scandals in automotive history and yet you want Renault to fail?

      • alexxx

        Spot on.

  • Alduin

    Renault is awful. Why does the French government own Renault anyways?

    • Matt

      Lol you haven’t even seen a Renault before, considering they don’t even sell them in the US.

  • Maisch

    Well Ranult-Nissan is a healthy company with lots of good and modern cars, FCA is the opposite, with billions needed to develop new platforms for the ageing car fleet, FCA are definitely more desperate in this situation and arent really in as good place to negotiate as they probably think they are. Im glad for Renault-Nissan that this crashed 🙂

  • Wandering_Spirit

    There is a lot of politics going on between Italy and France. I believe that between Nissan being unhappy and French government being on a rampage against Italy, the deal will not be done. Same happened in the naval sector and in other areas.

  • Bash

    But who else to blame? (Still looking at you French Goverment)

  • Rufus

    the Renault management wanted make the deal while the french gov. didn’t. Nothing else, at this conditions who would like to merger with Renault?

  • charlotteharry57

    I’m still hoping that FCA spoke to Nissan secretly and realized that they could do a better deal with Nissan/Mitsubishi without involving Renault. Renault was bringing little, if anything to the table as far as long-term viability. If Renault has the urge to merge, merge with PSA.

    • Matt

      What do you mean Renault is ‘bringing little’? They saved Nissan from bankruptcy and designed many of the platforms and engines that Nissan currently use. Without this sharing arrangement Nissan would have been consigned to the history books a long time ago.

  • Oscar Cereijo

    Interesting to see many experts in car industry and finances now commenting politics… ?

  • Stephen G

    Either FCA doesn’t know what the word “negotiation” means or they have a better offer.

  • Leconte Dave

    FCA should merge with Hyundai

  • Matt

    They’re not crap at all. How would you even know? Mercedes wouldn’t use Renault Diesel engines if they were ‘crap’. You can’t be the current holder of the fastest hatch around the Nürburgring (and have held that title three times prior) if you’re ‘crap’. You can’t have the best-selling EV in Europe if you’re ‘crap’.

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